Task:
Explain the Economic Problem and the Concept of Opportunity Cost using the Production Possibility Frontier. 1500 words
1. Define the concept of Economics, citing appropriate definitions. (200 words)
2. Outline the basic Economic Problem, highlighting
a) What goods to produce
b) How to produce them
c) For whom goods are produced
Discuss briefly how this problem is solved differently in various economic systems (300 words)
3. Explain the concept of Opportunity Cost using an appropriate example (300 words)
4. For a country of your choice, use a Production Possibility Frontier to help illustrate the way its economy operates. Draw at least 2 diagrams
showing various possible production points relating to choice, the efficient use of resources and long term economic growth. (700 words)
Please answer this question by defining and discussing fully all of the above economic ideas. Give suitable examples and use appropriate diagrams to demonstrate your understanding of relevant economic theory.
Please note this report is worth 40% of the total marks available for this module
Do not copy wholesale from textbooks/handouts /internet sources. Write in your own words as much as possible. It is permitted to copy diagrams provided the source is quoted and the explanation is paraphrased .